ADDENDUM: Federal Compliance Addendum to AClare, LLC Compliance Suite
As an official supplement to the AClare, LLC Compliance Suite, this Addendum establishes additional policies and representations required for all federally funded programs and contracts.
Section 1: Conflict-of-Interest Policy
Purpose: To ensure all corporate decisions are impartial and transparent.
- Disclosure Requirement
Each director, officer, manager, or key employee must immediately disclose any actual or potential conflict of interest in writing to the Board of Managers.
- Definition of Conflict
A conflict of interest arises when personal, financial, or business relationships could influence—or appear to influence—an individual’s performance of company duties.
- Review & Resolution
Upon disclosure, the Board will evaluate the conflict and may require:
- Recusal from related decision-making
- Imposition of mitigation measures
- Declination of the transaction
- Documentation
All disclosures and Board determinations will be recorded in the minutes and retained in official company records.
Section 2: Appropriations & Constitutional Compliance
Scope: Applies to all federally funded activities.
- Appropriations Compliance
AClare, LLC will not obligate or expend funds beyond amounts or purposes authorized by annual Federal appropriation acts.
- Constitutional Mandates
In administering federal funds, AClare, LLC will uphold the U.S. Constitution, including freedom of speech and religious liberty. (See 2 C.F.R. §§200.300–200.303.)
Section 3: Federal Statutes & Regulations
AClare, LLC maintains compliance policies for the following key laws and regulations governing federal awards:
- Trafficking Victims Protection Act (TVPA), 22 U.S.C. §7104(g):
Zero-tolerance for trafficking; mandatory reporting and contract termination for violations.
- Drug-Free Workplace Act, 41 U.S.C. §8103:
Requirement for a drug-free environment; violations may lead to disciplinary action or contract termination.
- Whistleblower Protection, 41 U.S.C. §4712:
Confidential channels for reporting fraud, waste, and abuse; strict non-retaliation.
- National Environmental Policy Act (NEPA), 42 U.S.C. §4321 et seq.:
Environmental impact assessments and documented mitigation strategies for covered projects.
- Universal Identifier & SAM, 2 C.F.R. Part 2:
Mandatory use of a Unique Entity ID and annual SAM.gov registration.
- Subaward & Executive Compensation Reporting, 2 C.F.R. Part 170:
Data collection via FSRS; record retention for audit purposes.
- Debarment & Suspension, 2 C.F.R. Part 180:
Regular exclusion screenings to prevent engagement with prohibited parties.
- False Claims & Program Fraud (31 U.S.C. §§3729; 31 U.S.C. §3801 et seq.; 18 U.S.C. §§287, 1001):
Robust anti-fraud controls, training programs, and mandatory fraud disclosure.
- Lobbying Disclosure Act, 2 U.S.C. §1601 et seq.:
Prohibition on using federal funds for lobbying; non-lobbying certifications required.
- Civil Rights Acts:
- Title VI (42 U.S.C. §2000d): No discrimination on race, color, or national origin.
- Title VIII (42 U.S.C. §3601): Fair housing and non-discrimination.
- Title IX (20 U.S.C. §1681): No discrimination based on sex in education programs.
- Rehabilitation Act §504, 29 U.S.C. §794:
Accessibility and reasonable accommodations for individuals with disabilities.
- Age Discrimination Act, 42 U.S.C. §6101 et seq.:
Prohibition of age-based discrimination in hiring, contracting, and service delivery.
Section 4: Implementation & Maintenance
- Annual Review: Update policies to reflect changes in law and regulations.
- Training: Provide mandatory compliance training for employees and contractors.
- Recordkeeping: Retain all disclosures, certifications, and training records for at least six years.
Effective Date: June 12, 2025
Approved By: Clarence D. Hawkins, MBA
This Addendum is incorporated by reference in the AClare, LLC Compliance Suite and Operating Agreement.